$1000 HSA catch up pymt doesn't get pro-rated like the $3450 for a part year HDHP. Turbo shows an excess 250contribution when I enter $3587.5(9mths of $3450 and $1000)

[ccase36]

I understand that the $1000 HSA catch up payment does not get pro-rated like the $3450 does if you only have a part year HDHP.  However, Turbo Tax keeps telling me I over-contributed by $250 when I enter that I contributed $3587.5 which is a prorated 9 months of the $3450 limit plus the $1000 catch up (not prorated). 

[dmertz · Accepted solution]

TurboTax is behaving correctly.  The catch-up contribution limit certainly is required to be pro-rated for the number of months that you were HSA-eligible in the same way that the regular limit is pro-rated.  If you were HSA eligible for only 9 months of the year (and you were not HSA-eligible for December), your catch-up limit is $750.  Section 223 of the tax code requires that the annual catch-up amount be added to the regular annual limit and then the sum divided by 12 to determine the monthly amount for pro-rating.

[BMcCalpin]

This is the exact example given in IRS Publication 969 on page 6 under "Enrolled in Medicare" (<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p969.pdf">https://www.irs.gov/pub/irs-pdf/p969.pdf</a>) - a man who is 65 went on Medicare in July, so while his normal HSA contribution limit would have been $4,400 ($3,400 plus $1,000), the 6 month pro-rated limit is 6/12ths his normal annual limit of $4,400. NOTE that Pub 969 has not been updated for 2018, but these examples are still valid, with the change of your annual limit to $3,450 (plus $1,000).  

[ccase36]

Thank you so much dmertz.  Lively is the keeper of my HSA and they are the ones who told me that it doesn't prorate.  I will pass on TurboTaxBillMc's post to them.  Thank you again!!!!

[tandgboone]

What line do I add $1000 HSA catch up contributions on 8889-T?

Why does my Fed Tax due go up instead of down when I enter my $1000 HSA catch up contributions.

My company deducted 7500 from my paycheck and that shows correctly in W2, but since I am >55, I added $1000 to my HSA.  When I added my contribution to line 9 the amount of taxes I I owed went up by $300 so I think I need to add it elsewhere, but I could determine where.